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 / Spring 2013 / Issue 70(originally published by Booz & Company)


What the West Can Learn from Jugaad

To simultaneously deal with low-volatility, resource-rich settings and high-volatility, resource-constrained settings, companies need two sets of innovation capabilities: the structured capability, with its volume-oriented economies of scale, hard capital, and efficiency, and the jugaad capability, with its value-oriented economies of scope, soft capital, and flexibility. Mature companies that strike this innovation balance will be better positioned for success in today’s complex, turbulent markets.  

Reprint No. 00143

Author Profiles:

  • Navi Radjou is a Silicon Valley–based strategy consultant, a World Economic Forum faculty member, and a fellow at the University of Cambridge’s Judge Business School.
  • Jaideep Prabhu is the Jawaharlal Nehru Professor of Indian Business and Enterprise and director of the Centre for India & Global Business at the University of Cambridge’s Judge Business School.
  • Simone Ahuja is the founder of Blood Orange, a marketing and strategy consultancy with content production capabilities headquartered in Minneapolis and Mumbai.
  • This article is adapted from the authors’ book, Jugaad Innovation: Think Frugal, Be Flexible, Generate Breakthrough Growth (Jossey-Bass, 2012).


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